Nvidia is making another smart move in China by introducing two new AI chips, despite facing challenges from U.S. export restrictions. The company’s CEO, Jensen Huang, has revealed that these chips are now being offered to select customers for testing. Nvidia is trying to keep its strong position in the Chinese market, even as it navigates through the complexities of international trade laws.

The chips have been adjusted to fit within the new US Rules

Huang’s announcement didn’t dive into the specifics about the chips or who’s testing them, leaving many to wonder about the details. There’s been talk, especially from a newsletter called SemiAnalysis, about Nvidia planning to launch three chips (H20, L20, and L2) specifically for China. These chips reportedly include some of Nvidia’s latest tech but have been adjusted to fit within the new U.S. rules.

Nvidia

The situation for Nvidia in China has been tough lately. The U.S. government’s decision to tighten export controls has hit Nvidia’s sales hard. The company used to enjoy a significant chunk of its revenue coming from China, but recent measures have seen a noticeable drop in earnings from that region.

Despite these hurdles, Nvidia is not sitting back. It has started accepting pre-orders for the H20 chip, which is being positioned as a strong contender against competitors like Huawei. However, there have been some bumps in the road, such as delays linked to server manufacturers having trouble incorporating the chip into their systems.

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